APL Logistics, a global supply chain management provider, and LTL carrier Con-way Freight have announced the launch of “OceanGuaranteed,” a new service the companies say provides secure, rapid delivery of less-than-container load shipments from China to the United States. The companies are accepting bookings for the new service effective Sept. 5.
“We have created an entirely new service category for our customers that responds to their demands for a premium, day-definite ocean service with transit times and delivery reliability that far exceeds traditional LCL products,” says Brian Lutt, president of APL Logistics. “We are also able to deliver top-class performance in a package that represents a great value alternative to international airfreight.”
OceanGuaranteed is designed to respond to increasing customer demand for a premium ocean LCL/domestic LTL service that offers faster transit times and day-definite delivery that is more cost-effective than air freight, according to the companies. The program will provide “port-to-door” guaranteed service from Hong Kong, Shanghai and Shenzhen in China, to all continental U.S. destinations served by Con-way Freight, over Los Angeles as the U.S. port-of-call for customs clearance and deconsolidation. Shipments that fail to meet the delivery-day commitment receive a 20 percent discount, subject to the terms of the service guarantee.
“In today’s global marketplace, the majority of our customers are sourcing some aspect of their business in China,” says David McClimon, president of San Mateo, Calif.-based Con-way Freight. “They are managing longer supply chains and more import volumes, yet they still remain under pressure to accelerate product through their domestic distribution networks as rapidly and cost-efficiently as possible. Combining our network with APL Logistics creates a new service that directly addresses this critical requirement.”
For C-TPAT certified customers, shipments tendered under OceanGuaranteed will be segregated in dedicated C-TPAT-only containers — minimizing the chance of potential delay from non C-TPAT shippers, and allowing these cargoes to be “green-laned” by U.S. Customs and Border Protection, the companies say. Moreover, APL Logistics and Con-way Freight have established a simplified pricing structure for OceanGuaranteed; shipment pricing will be calculated on a per kilo rate, based on delivery from the origin ports in China, to 11 delivery zones in the United States. OceanGuaranteed shipments also will receive expedited handling, including late-gate privileges at origin, “last on, first off” loading/unloading and priority shipboard stowage for rapid discharge at the destination port.
APL Logistics serves as the overall program manager and the carrier of record for shipments tendered on APL Logistics through bills of lading. Operationally, APL Logistics will handle all in-country China shipment management services, and ocean carriage will be provided by APL Logistics’ sister company, APL. Con-way will manage receipt of ocean containers and deconsolidation in Los Angeles, and delivery of cargo as LTL shipments to the customer’s door in the United States.
The two companies decided to establish the joint service following the results of a market study commissioned with MergeGlobal, an industry research and consulting service. The study examined current and emerging conditions for transportation service and capacity in the trans-Pacific, as well as shipping patterns, outsourcing practices, business economics and customer supply chain issues.